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The Philippines secured financing with the South Korean government for the Dumaguete Airport Development and the latest Economic Development Promotion Facility
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The Dumaguete Airport project entails construction of a new airport facility
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The project has a total cost of P17.06 billion, P13.15 billion of which will be supported by the Export-Import Bank of Korea
The Philippines has secured financing with the government of South Korea for the new Dumaguete Airport Development and the latest Economic Development Promotion Facility (EDPF), according to the Department of Finance (DOF).
The Dumaguete Airport project has a total cost of P17.06 billion, about P13.15 billion of which will be supported by Export-Import Bank of Korea (KEXIM), DOF said in a statement.
Under the Dumaguete Airport project, a new airport facility that complies with domestic and international standards for operational safety and efficiency will be constructed. The project covers 197.55 hectares of land development in the Municipality of Bacong, Negros Oriental.
It is envisioned to enhance the tourism and trade potential, economic activities, and standard of living in the province.
“The new airport will enhance our capacity to welcome a surge of tourists in the post-pandemic era,” Finance Secretary Ralph Recto said during the exchange of notes and signing ceremony on August 7.
“With the new Dumaguete airport, we anticipate accommodating up to 2.5 million passengers per year, up from just 800,000. From serving limited domestic flights, we can now open the door to international routes,” Recto said, noting that Negros Oriental currently has only one major airport.
Aside from Dumaguete, Recto said the government is looking at upgrading more regional airports in the country to ensure the “fruits of growth and modernization” reach every island in the archipelago. “We are making sure that no destination is left behind,” he said.
The $3-billion new EDPF, meanwhile, will serve as an additional financial bridge for realizing the Marcos administration’s “Build Better More” infrastructure program.
“The facility we have signed today with South Korea will enable us to deliver more infrastructure projects nationwide, from roads and bridges to disaster risk reduction efforts,” Recto said.
Among projects in the pipeline for possible funding assistance under the new facility are the Panay-Guimaras-Negros Island Bridges; the Consolacion-Liloan Bypass Road Project; the Lapu-Lapu Coastal Road Project of the Department of Public Works and Highways; and the Pampanga Integrated Disaster Risk Reduction and Climate Change Adaptation Project Phase II.
Recto is confident these infrastructure projects will not only enhance mobility, but improve the lives of Filipinos by creating more jobs and businesses, boosting incomes, uplifting lives, and reducing poverty.
“We will also see to it that we monitor and personally visit the projects to ensure their timely completion,” he said.
The financing agreements for the projects were signed between Recto, on behalf of the Philippine government, and KEXIM chairman and president Yoon Hee-sung on behalf of the government of Korea.
DOF said financing for the new Dumaguete Airport project carries very concessional terms, with interest rates of 0.05% per year for non-consulting services and 0.0% per annum for consulting services, to be repaid in 40 years, inclusive of a 10-year grace period.
The individual financing of projects to be lined up under the EDPF will carry an indicative interest rate of 1.2%, to be repaid in 25 years, inclusive of a seven-year grace period.
